Northland Port 1H profit rises 15% on increased log volumes

Feb. 26 (BusinessDesk) – Northland Port, the
investment company that owns half of Northport, reported a
15 percent increase in first-half profit on increased export
log volumes across the wharves at Marsden Point.

Profit
rose to $3.67 million in the six months ended Dec. 31, from
$3.2 million a year earlier. Operating revenue rose 18
percent to $4.92 million.

Northland Port is 54 percent
owned by Northland Regional Council and about 20 percent by
Ports of Auckland. It owns 50 percent of Northport, with the
remainder held by Port of Tauranga. Northland Port’s other
interests include stevedoring, cool stores and 185 hectares
of land at Marsden Point. The bulk of its earnings come from
port operations.

Total cargo volumes through the port rose
11 percent to 1.54 million tonnes, of which logs accounted
for 1.14 million tonnes.

Rising volumes across the
wharves are putting pressure on existing storage capacity,
prompting the port to accelerate plans to pave a further 3
hectares of land. That work is expected to be complete by
the end of the financial year.

Chairman Sir John Goulter
said annual cargo throughput at Northport is forecast to
rise above 3 million tonnes from 2.7 million tonnes a year
earlier.

“Assuming this projected volume is reached, a
further uplift in the overall profitability of the group can
reasonably be expected,” Sir John said.

The company will
pay a first-half dividend of 4.5 cents on March 22, up from
3.5 cents a year earlier.

Shares of Northland Port last
traded at $2.99 and have gained 24 percent this
year.

The Wellington-based BusinessDesk team led by former Bloomberg Asian top editor Jonathan Underhill and Qantas Award-winning journalist and commentator Pattrick Smellie provides a daily news feed for a serious business audience.

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